Hello readers,
On January 3rd, apple's stock surged to $182.94, making it the first company to cross the market cap of $3 trillion, making it even bigger than the Indian economy. The giant is bigger than the GDP of 186 countries. The combined market cap of Alphabet and Facebook is $2.8, T, making us ask what makes them so powerful today; we will discuss the same.
The answer is that they have monopolies over the data. Facebook generates 41000 gigabytes of data per day. Science Focus estimates that Amazon, Google Microsoft & Facebook collectively store at least 1,200 petabytes(1 petabyte = 1000000 gigabytes). Well, how robust the data is? Glad you asked. Facebook and Google generated revenue of $175 billion in 2021 from ads. Controlling a database allows them to offer ads based on keywords, but it also allows them to publish ads based on the relevancy of the information resulting in more clicks hence more revenue. Data and monopoly also give the power to innovate like the Facebook marketplace, reels, IGTV, google publishing, google docs, google sheets, youtube, google maps, google finance, google news and many more innovative breakthroughs are within the power of the mega-tech companies. Since they control the databases and other platforms, there's little to nothing anybody can do without that. Without access to the information, it is not easy to build an application. Google inc uses that revenue to pay for the rapid prototyping of new ideas, which often grow into new sources of revenue. These giants innovate and curb the innovation of others like what happened with Snapchat and TikTok/Musically.
In Oct. 2013, Snapchat first introduced the story function. Facebook and Instagram copied their features like stories and short videos to all their platforms. Google also copied both on youtube, and eventually, they both became more popular than snap and TikTok. It's like the new age start-ups are just there to suggest new ideas to these companies. Amazon has disrupted the retail markets, and now Amazon is using its database to know what kind of products and features of products a particular market segment likes and then just the next simple step is to copy them. Voila, you got the product already in great demand and has a promising future, so that's how these giants control Everything with the power of data. These companies also affect our lives, politics, democracy, jobs and Everything.
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